This mornings USDA grain report was bullish soybeans thanks to a lower yield estimate based on expectations and lower stocks based on expectations. Right now, soybeans are up 20 higher but 12 off the low.

However, the USDA increased corn yields 2 bushels and acre and increased stocks. Wheat stocks were raised as well. The data was bearish but corn is 3 higher and 5 off the high. Wheat is 2 to 3 lower and 6 off the high. The data from the report is bearish corn and wheat.

Even with soybean prices up 20 cents, I am not that impressive with the grains. But I am more neutral grains now that I have digested the USDA data. And based on that data, I said earlier when soybeans were up 29 cents it would not surprise me if the market was lower by the close.

In the livestock complex, front month cattle are 145 and 122 lower with hogs off 100 points and feeders lower by 160 points. Come out of today, short the critters. The highs are likely in place and the coming weakness will be swift and deep. Hopefully, some of you got short December hogs over $63 as I mentioned earlier today. The high today was $63.12 with the last $61.47.

Come out of today, short cattle, hogs and feeders. Keep selling rallies. The odds are high that the critters have peaked out and the coming weakness will be led by cattle.

Looking across the entire board this afternoon and despite soybeans being higher, I remain convinced that in the 4th Quarter, there will be far more markets crashing and burning than trending higher.